India’s economy recorded a 7.8% GDP growth in the latest quarter, a figure celebrated by Prime Minister Narendra Modi as a sign of economic strength. However, the opposition Congress party has raised concerns, arguing that this headline number does not reflect the comprehensive state of the economy.
Manufacturing, construction and services were all doing well. You have had manufacturing growth doing well. You also see construction. He added, “It’s very broad-based. It’s driven not just by consumption, as many people tend to accuse India’s economy. That’s consumption-driven growth. Sanyal rejected the criticism that India’s manufacturing sector was struggling. He pointed to sectors such as steel, cement, pharmaceuticals and smartphone manufacturing. He also pointed to car sales as another sign of strong domestic demand. It has also pointed to the agriculture sector. However, he admitted that unemployment among educated young people remains a serious concern. Colleges should work more closely with companies, while apprenticeships and skill training should become a bigger part of education. The Prime Minister, meanwhile, has also urged people to avoid spending unnecessarily on gold, foreign holidays and destination weddings. He asked Indians to holiday and hold weddings in India, buy local products and avoid unnecessary gold purchases. “From an individual perspective, it may look like an investment.
Because it’s not from just any single source, “The sources of this growth are actually quite interesting to see. Because traditional classroom-based education is no longer enough, the economic advisor said India’s education system needs to change. The financial sector was also performing strongly and the investment in the economy also increased by 12%. The Congress suggested people look beyond the 7.8% GDP figure and ask where the jobs are.
Speaking to NDTV’s Shiv Aroor, Sanjeev Sanyal, member of the Prime Minister’s Economic Advisory Council, said the 7.8% growth was “very strong”, especially at a time when the world economy is facing several challenges. Sanyal said the growth was not coming from just one part of the economy. The services sector is always strong, but you can see the financial sector doing very well,” Sanyal said. He said India is now the world’s second-largest steel producer after China and is well ahead of the US, which is third. He said this is happening even as car sales in China have fallen. “India’s car sales have risen significantly, while domestic car sales in China have fallen by around 20%,” he said. Responding to the criticism, Sanyal said official figures show that unemployment has been falling in both rural and urban areas. “This is an area that we really do need to work on,” he said. Sanyal said the problem is not limited to India. China is also facing high unemployment among educated young people, he said. He said young people often have theoretical knowledge but lack work experience which makes it harder for them to find jobs He further stated that students should be able to gain work experience while studying. But from a national perspective, it is consumption,” Sanyal said, adding, “A lot of capital gets stuck into it, which could be better mobilised for doing other things.”
